Below are the statistics and analysis for the Germantown, MD market:
- Homes for sale: 536 (up from 517 in June. Up from 442 one year ago)
- Homes sold: 86 (down from 128 in June and down from 117 one year ago)
- Average sales price: $284,660 (up from $281,345 in June 2010 and about the same as $283,808 one year ago)
- Average days on market: 52 (up a bit from 40 last month, but still way under 102 days a year ago)
So what do the statistics tell us? Today, we have more inventory at close to the same average sales price as we did a year ago, but it is selling faster. However, due to the race to close in the second quarter, we are currently seeing fewer transactions.
While prices are stable and time on the market is still reasonable, we are without a doubt still feeling the after effects of the tax credit deadline. In order for buyers to get the tax credit before it expired, some third quarter sales were “pulled” into the second quarter. The “Trade Up” market, where existing homeowners have equity and want to buy a more expensive house, has started and it will also pull prices up as higher priced sales occur.
Since we have a stabilized unemployment rate and low interest rates what I expect to happen is similar to what happened in the car business after “Cash for Clunkers” ran out; the market will return to equilibrium over a three to six month period.
Commentary and analysis provided by David Hess, Executive Vice President.